Pitti Engineering has reported a 71 per cent fall in March quarter net profit at ₹2 crore, against the ₹7 crore logged in the same period last year, due to the Covid-induced lockdown and economic slowdown.

The revenue of the company, which produces sheet metal components including motor cores, sub-assemblies and die-cast rotors, fell 27 per cent to ₹113 crore (₹154 crore). Ebitda dipped to ₹18 crore (₹23 crore) even as Ebitda margin improved to 16 per cent (15 per cent).

The company has decided to continue with its capex plans of enhancing capacities at its Aurangabad and Hyderabad plants despite the pandemic outbreak, said a statement.

The board has approved an expansion plan to enhance its installed sheet metal components production capacity to 46,000 tonnes from 36,000 tonnes and that of machining to 4,05,600 hours from 2,47,600 hours with an investment of ₹270 crore at its Hyderabad and Aurangabad plants.

The company is gearing up for new opportunities in the fabrication and shaft making segments in the next three years. In a bid to enhance margins it plans to manufacture some of the components that were sourced from third parties and optimise the supply chain besides increasing the automation levels at its plants.

The order book, which stood at ₹600 crore as of March end, includes the supply of engineering products to companies such as Cummins Generators, Siemens, Alstom and ABB, the statement added.

Akshay Pitti, Vice-Chairman and Managing Director, said the fall in profit was due to the inability to deliver finished goods to customers on account of the lockdown imposed in the second half of March, a crucial month for demand.

“We are already seeing green shoots and supplies have started. The suppliers are exhausted and tremendous order flow is expected to just meet the current demand in capital goods sectors especially in high value-added products, wherein we have a presence,” he said.

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